Rwanda

P.L 480 Title II Monetization Program

Fiscal Year 2006 Results Report (October 1, 2005-September 30, 2006) FFP-A-00-04-00073-00

Submission Date: November 27, 2006

Avram E. Guroff Paul DeLucco Senior Vice President Country Representative/Chief of Party Food Security & Specialty Crops Portfolio Rwanda PL-480 Title II Program 50 F. Street NW, Suite 1100 P.O. Box 4628 Washington, DC 20001 Kigali, Rwanda Tel. (202) 879-0604 Tel/Fax (+250) 571358 Fax (202) 626-8726 [email protected] [email protected]

ACDI/VOCA Rwanda FY 2006 Results Report

Table of Contents

I. FISCAL YEAR 2006 RESULTS REPORT ...... 4 A. Annual Results...... 4 1. Approvals ...... 4 2. Objective 1: Increased incomes and reduced vulnerability to food insecurity...... 6 3. Objective 2: Improved household health and nutrition and reduced vulnerability to HIV/AIDS...... 10 4. Objective 3: Increased access to basic food commodities through monetization and local production.12 B. Monitoring & Evaluation, Audits, and Studies ...... 13 1. Monitoring & Evaluation Plan...... 13 2. Bellmon Analysis ...... 19 3. A-133 Audit ...... 20 4. Internal and External Plans and Studies...... 20

ANNEX A1-A Rwanda Host Country Agreement Letter ANNEX A1-B Administrative Map of Rwanda ANNEX A1-C MINECOFIN Food Aid Letter ANNEX A2-A Photograph of COOPAC Bag ANNEX A2-B FLO Certification Letter ANNEX A2-C Photograph of UNION ROASTER Bag ANNEX A2-D Photograph of COVEPAR Cassava Bag ANNEX A3-A NYAMAGABE DISTRICT MAP

ACDI/VOCA Rwanda FY 2006 Results Report

List of Acronyms

ABIYUNZE Tomato Producers' Cooperative, Gitarama Province ADAR Assistance à la Dynamisation de l'Agribusiness au Rwanda BRD Rwanda Development Bank C&F Commodity and Freight COOPAC Coopérative pour la Promotion des Activités - Café COP Chief of Party COPROVAB Coopérative pour la Promotion et la Valorisation de la Culture de Blé COVEPAR Coopérative de Valorisation et d'Exportation des Produits Agricoles Rwandais CRS Catholic Relief Services DA Development Assistance MYAP Multi-Year Assistance Program DCOP Deputy Chief of Party FFP/W Office of Food for Peace, Washington FRw Rwandan Franc FY Fiscal Year GAP Gikongoro AIDS Project (Africare) GOR Government of Rwanda Ha Hectare (i.e. 2.5 acres) HBC Home-Based Care HRWW Hard Red Winter Wheat ICRAF World Agroforestry Centre IEC Information, Education, and Communication IKABI Tomato Producers' Cooperative, Kigali-Ngali Province IPTT Indicator Performance Tracking Table ISAR National Agricultural Research Institute of Rwanda Kg Kilogram LOA Life of Activity M&E Monitoring and Evaluation MINAGRI Ministry of Agriculture MINALOC Ministry of Local Government MINECOFIN Ministry of Finance and Economic Cooperation MINISANTE Ministry of Health MINITERE Ministry of Lands, Environment, Forestry, Water, and Mines MT Metric Ton PEARL Partnership for Enhancing Agriculture in Rwanda through Linkages PERSUAP Pesticide Evaluation Report and Safer Use Action Plan P.L. 480 Public Law 480 RAVAC Regroupement des Associations pour la Valorisation des Cultures RELMA Coffee Appellation in East Africa Project SOTIRU Société des Travaux Industrielles du Rwanda SPREAD Sustaining Partnerships to Enhance Rural Enterprise and Agribusiness Development TA Transfer Authorization USAID United States Agency for International Development VAT Value Added Tax VCT Voluntary Counseling and Testing

ACDI/VOCA Rwanda FY 2006 Results Report I. FISCAL YEAR 2006 RESULTS REPORT A. Annual Results 1. Approvals a. Transfer Authorization Approval In July 2004, the USAID Office of Food for Peace (FFP/W) approved a Transfer Authorization to ACDI/VOCA to undertake a five-year Multi-Year Assistance Program (MYAP), from February 1, 2005 to January 31, 2010, for the distribution and monetization of 15,911 MTof donated food in Rwanda, specifically: 12,806 MT of refined vegetable oil (in 4-liter tins); 705 MT of corn/soy blend; and 2,400 MT of bagged hard red winter wheat (HRWW). The five-year total estimated budget for the approved MYAP is $12,779,566 including estimated sales proceeds and 202(e) funding.

The overall goal of the MYAP is to reduce chronic food insecurity and vulnerability of individuals, households, and Rwandan communities to food security shocks. The objective framework may be summarized as: Objective 1: Increased incomes and reduced vulnerability to food insecurity. IR 1.1 Increased adoption of improved agricultural production and processing practices. IR 1.2 Improved access to markets.

Objective 2: Improved household health and nutrition and reduced vulnerability to HIV/AIDS. IR 2.1 Improved access and use of health and HIV/AIDS services. IR 2.2 Improved knowledge and use of good nutritional practices.

Objective 3: Increased access to basic food commodities through monetization and local production. IR 3.1 Increased availability of basic commodities through monetization. IR 3.2 Strengthened capacity of local traders to market and distribute imported and locally produced commodities.

This is the second results report submitted under the MYAP, covering the period October 1, 2005 to September 30, 2006. b. Host Country Food Agreement (HCA) Approval

On October 13, 2005, the Chief of Party (COP) met with the Minister of Finance to discuss the ACDI/VOCA P.L. 480 Title II Program in Rwanda. It was a good humored meeting of about 30 minutes and, observing that the ACDI/VOCA MYAP proposal did conform closely to the newly defined GOR Food Aid requirements, the Minister of the Ministry of Finance and Economic Cooperation (MINECOFIN) signed the HCA– more than nine months after submission (Ref: Annex A1-A). The approved HCA serves as primary justification for formal registration of ACDI/VOCA with the Ministry of Local Government (MINALOC), permitting ACDI/VOCA to work legally in Rwanda. The annual MINALOC registration, in turn, authorizes the issuance of annual work permits and visas for expatriate staff.

4 ACDI/VOCA Rwanda FY 2006 Results Report c. ACDI/VOCA Registration, Work Permits, and Visas

In November, ACDI/VOCA staff, with an approved HCA in hand, began the process of registering the organization for 2005 and 2006. Unfortunately, due to a broad reorganization exercise going on within the MINALOC, ACDI/VOCA made little headway on registration before the end of the calendar year. Newly-established Government of Rwanda (GOR) procedures call for every NGO to obtain formal letters of invitation from the mayors of those districts in which the NGO plans to work. At the end of 2005, however, the GOR instituted a complete reorganization of Rwanda’s admin- istrative structure which transformed the map of the country. Rwanda went from 11 provinces plus the city of Kigali to 4 provinces plus Kigali (Ref: Annex A1-B). New mayors were selected and trained in November, December, and January. Under the circumstances, it had become impossible to garner letters of invitation from any district to fulfill the requirements for registration. Without MINALOC registration, it was impossible to obtain work permits. Without work permits, it was impossible for the expatriate staff members to apply for residence visas. The expatriate staff of ACDI/VOCA found themselves in a legal limbo as the 1st Quarter of FY06 came to a close.

Frustration over registration continued into the 2nd Quarter. Few district mayors were in place by January 2006 and it proved impossible to acquire a letter of invitation from a district. (Note that a letter from the office of a provincial governor would not have been acceptable to MINALOC. In the interests of decentralization, approval had to come from a district mayor’s office.) On January 20, 2006, MINALOC did accept the ACDI/VOCA application file but advised they would not be able to process it without at least one letter from a district. The file included all documentation requested by MINALOC except the letter of invitation, i.e.:

1. Copy of the Executive Summary of the Final Evaluation of the 2000 – 2005 pro- gram; 2. Copy of the program of activities proposed for the period 2005 – 1010; 3. Inventory of NGO assets; 4. Notarized copy of the MOU between MINECOFIN and ACDI/VOCA covering the period 2005 – 1010; 5. Copy of the Transfer Authorization transmittal letter from USAID attesting to the availability of funding; and, 6. Copy of registration certificate for 2004.

In March 2006, the Mayor of the new District of Rwamagana, Eastern Province, issued a letter of invitation to ACDI/VOCA to continue its development activities in the District in support of tomato farmers and the rehabilitation of farm-to-market roads. On March 16, 2006, MINALOC duly issued a formal certificate of registration to ACDI/VOCA for the 2006 calendar year. Invitations later arrived from the Southern Province Districts of Nyaruguru and Nyamagabe on May 19, 2006 and Gisagara on May 29, 2006.

Based on the formal certification of ACDI/VOCA as an international NGO authorized to work in Rwanda, the GOR Ministry of Public Service and Labor (MIFOTRA) issued 2006 work permits for ACDI/VOCA expatriate staff in May. The issuance of work permits, in turn, permitted the Immigration Office to issue residence visas, valid to December 31, 2006. 5 ACDI/VOCA Rwanda FY 2006 Results Report

d. Implications of the Delay in GOR Approval of the Host Country Food for Peace Agreement

The reaction of the GOR to the new MYAPs is, above all, a sign of greater interest in the activities of NGOs. Such interest is a positive indicator of an evolutionary trend that is ongoing within certain countries in Africa. In the future, the GOR must be a full partner in program planning, including the Bellmon Analysis. In 2006, the Rwanda cooperating sponsors, with participation from the GOR, agreed to contract-out the Bellmon analysis to Emerging Markets Group (EMG) to produce an analytical and impartial Bellmon. The August letter from the Minister of Finance and Economic Cooperation to the Director of USAID clarified the GOR’s interest in continuing the food assistance program (Ref: Annex A1-C).

2. Objective 1: Increased incomes and reduced vulnerability to food insecurity

a. IR 1.1: Increased adoption of improved agricultural production and processing practices.

i. Collaboration with ICRAF

During the reporting period, ACDI/VOCA signed a Recipient Agency Agreement (RAA) with the World Agroforestry Centre (ICRAF) for the implementation of a pilot reforestation program in the Western Province. This program, which incorporates a significant cost-share from ICRAF, envisions the planting of indigenous trees on the crowns of hills in the steep countryside as well as the distribution of agroforestry and fruit tree seedlings to coffee farmers for planting alongside their fields to shade their coffee trees.

This program promotes synergies with other USAID priorities. First, the planting of trees on the crowns of coastal hills, promotes a methodology for slowing soil erosion in the highlands of Western Province, a condition that has been visibly accelerating. Insofar as the recent successes of USAID-funded projects in the production and marketing of specialty coffee have encouraged new plantations on the steep hillsides, this program will extend a technology that will lessen the environmental risk of such plantings while providing valuable commercial trees that will provide another potential source of income to poor farmers. The trees will also provide shade cover which will improve the quality of the coffee, primarily by extending the ripening process to produce denser beans. Finally, the program will multiply and distribute species of trees indigenous to the original Congo-Nile Crest afromontane forest, now represented by the relict forests of Nyungwe, Gishwati, and the Virungas, that once extended through the Western province. The primeval forest can never be re-established, of course, but the planting of indigenous species, especially on the crowns, will contribute to the ecological health of the area and play a small part in the GOR’s efforts to conserve biodiversity.

According to ICRAF research, the reforestation of coffee plantations will result in a significant increase in bird populations and other small animal populations. There is evidence that of all agricultural uses of land, shaded coffee and cocoa plantations produce the highest level of biodiversity. For instance, over 150 species of birds have been identified from shaded coffee plantations which compares well with primary forests 6 ACDI/VOCA Rwanda FY 2006 Results Report (Smithsonian Bird Centre). Additionally, studies in Colombia and Mexico found 94% to 97% percent more bird species in “shade-grown” coffee plantations as compared to sun- grown systems. The shade system will also increase on-farm biodiversity and offer alternative sources for fire wood, medicinal products and other non-timber forest products, thereby further reducing pressure on natural forests, particularly the remnants of the neighboring Gishwati Forest.

ii. Wheat Subsector Activities

From February13-15, 2006, an ACDI/VOCA team headed by Cooperative Coordinator Esri Mpyisi carried out a preliminary assessment of six wheat cooperatives in the Southern Province: KOPETU, Dukundumurimo, Dufatanye, Twongerumusaruru, KOPABINYA, and KOAINKI. All were registered in the previous five months and all are six potential suppliers for the Minoterie de Nyungwe, the wheat mill privatized by the GOR and put into operation in 2004 by a private investor with technical assistance paid for under ACDI/VOCA’s Development Assistance (DA) grant. Membership in the cooperatives, all of which are already organized with more or less functioning administration and surveillance committees, ranges from 930 to 3,500 members.

The primary challenge posed by these wheat cooperatives, other than coping with the usual organizational shortcomings, is helping them raise production of wheat from the current 800Kg/ha to 2,500Kg/ha. This will require improved seed, fertilizers, herbicides, and the transfer of new techniques in agronomy.

In March, ACDI/VOCA organized the participation of Jean-Marie Gatete, Managing Director of SOTIRU, the largest commercial wheat mill in Rwanda, at the U.S. Wheat Associates annual meeting in Sharm-el-Sheikh, Egypt. SOTIRU purchased 800 metric tons of Hard Red Winter Wheat from the ACDI/VOCA monetization program in FY 2006.

iii. Tomato Subsector Activities

ACDI/VOCA sponsored a Tomato Committee Formation Meeting in the Kamonyi District, Southern Province, from December 28-30, 2005. The primary purpose of this meeting, which brought together the representatives of seven tomato-producing cooperatives, was to nominate an organizational committee to assist the member cooperatives with governance issues. Some interesting secondary issues were also discussed, namely: (1) the current price offered by the SORWATOM factory for a kilo of fresh tomatoes; (2) transport costs; (3) seed quality; and, (4) proper operation of a rotating credit fund. At the end of the session, elections were held for president of the committee. Mr. Prosper Ayishize, President of ABIYUNZE Cooperative, beneficiary of a Food Security Grant in 2004, won the election with 8 votes out of 12.

From February 21 to March 3, 2006, an ACDI/VOCA team made a reconnaissance of the tomato production areas of Rwanda in order to assess possibilities of extending the current support the project gives to the ABIYUNZE and IKABI cooperatives. The team visited five intergroupements (pre-cooperatives) already engaged in the commercial production of tomatoes. The groups comprise 2,226 men and 2,302 women heads of households. With an average household size of five, more than 20,000 people inhabiting the most food insecure region of Rwanda now earn a cash income from tomato 7 ACDI/VOCA Rwanda FY 2006 Results Report production.

iv. Cooperative Coffee

Coffee is not a focal crop under the MYAP. ACDI/VOCA does, however, plan to continue to offer training and capacity-building to the six cooperatives it assisted during the last DAP. ACDI/VOCA also continues to offer support to the coffee cooperatives in their formal relations with Fairtrade Labeling Organisations International (FLO), especially in responding to the annual inspections.

On October 27, 2006, the Certification Office of FLO announced that the Coopérative pour la Promotion des Activités-Café (COOPAC) had successfully passed its inspection and was certified to operate as a FLO producer for another year. The letter of certification stated in part:

“Nous tenons d’abord à vous féliciter pour tous les efforts déployés pour remplir les actions correctives attribuées dans la lettre de certification de Mars 2005. Les progres sont considerables et nous en sommes vraiment très heureux!“ [First of all, we would like to congratulate you for all of your efforts to undertake the corrective actions stipulated in the certification letter of March 2005. There has been considerable progress and we are truly very happy about it!]

ACDI/VOCA has assisted COOPAC since the founding of the cooperative in April 2002. A beneficiary of the Food Security Grants program, COOPAC is the biggest success story of ACDI/VOCA’s 2000–2005 DAP. Since the beginning of the MYAP, ACDI/VOCA has continued to offer capacity-building support to COOPAC, especially to assist the cooperative to comply with FLO requirements. In FY06, COOPAC was the largest exporter of fully-washed Rwanda coffee. The cooperative exported 216 metric tons to Europe for gross sales of $665,000 (Ref: Annex 2 - A).

Unfortunately, the Abahuzamugambi coffee cooperative of Maraba District, Southern Province, was advised by FLO that it would be decertified for failure to comply with recommendations of previous audits. Abahuzamugambi, the most famous coffee cooperative of Rwanda, became a noted producer of specialty coffee as a result of an intensive collaborative effort begun in 2001 by PEARL Project and ACDI/VOCA. Over the course of FY 2006, ACDI/VOCA worked with the cooperative to help them address the management shortcomings noted by FLO. Abahuzamugambi held new elections which saw the departure of the management committee and replacement by a new group of motivated farmer-members. ACDI/VOCA hosted a management training for the new officers and recruited an accounting consultant to help put the books in order. The new committee applied to FLO for an inspection which was carried out in September. On September 29, 2006, FLO announced that, based on the inspection results, they were lifting the suspension of Abahuzamugambi’s certificate and that the cooperative was allowed to trade its products under Fairtrade conditions (Ref: Annex 2 - B). The response came just in time for Abahuzamugambi to retain its most important clients. In FY 2006, Abahuzamugambi exported 72 MT to the UK and US for gross sales of $270,000 (Ref: Annex 2 - C).

8 ACDI/VOCA Rwanda FY 2006 Results Report v. Food Security Grants Fund

As of the end of FY 2006, the Food Security Grants Fund (FSGF) has not been operational due to lack of funds. USAID in Kigali called a meeting on May 24, 2006 to discuss the FSGF part of the Program. The objectives of the meeting were to discuss the current status of the ACDI/VOCA Food Security Grants Fund (FSGF), the consultative committee, and the possible implementation of grants before the end of FY 2006.

From the beginning of the MYAP to the end of 3rd Quarter FY 2006, ACDI/VOCA earned FRw 503,743,604 (approximately $907,646) in net monetization proceeds from the sale of vegoil and wheat. From this amount, however, ACDI/VOCA transferred $590,856 to subcontractor Africare, as budgeted, to permit them to start up their HIV/AIDS program in the Gikongoro Province. The monthly operational costs of the Rwanda program, including the salaries of the COP and D/COP as well as indirect costs, are over $50,000/month. In 2005 and 2006, calls forward were delayed and the ACDI/VOCA commodity allocation has been cut by 900 metric tons of vegetable oil since the beginning of the program. Unfortunately, it appears that the revenue stream is now insufficient to fund the FSGF at the level envisioned in the MYAP proposal. ACDI/VOCA will make detailed projections to clarify the financial situation. Based on current projections, there should be $400,000 available for grants funding at the end of Q2/FY 2007.

ACDI/VOCA staff continued to work with those grantees who received awards under the previous program. A supplementary grant of $50,000 was awarded to the Coopérative de Valorisation et Exportations des Produits Agricoles Rwandais (COVEPAR) to permit them to finish the construction of a cassava flour processing plant. COVEPAR shipped three containers of packaged cassava flour to France in FY 2006, earning $105,000 in gross sales. This packaged cassava flour is the only finished agricultural product currently exported from Rwanda (Ref: Annex 2 - D). These sales could double in the next year if the new processing plant functions as designed. COVEPAR also shipped three containers of chili peppers to the United Kingdom, earning $66,000 in gross sales for its member cooperatives. Chili peppers have a great deal of potential for competing in world markets but management and marketing are oftentimes difficult. COVEPAR is the only Rwandan organization to export cassava and chili peppers in FY 2006. b. Improved Access to Markets

ACDI/VOCA undertook no activities in road or bridge rehabilitation during the FY 2006 reporting period. In 2003, ACDI/VOCA had contracted with a local engineering firm for the production of technical blueprints for the continuation of the marketing road from the Bicumbi market in Nzige to the Rubona road on the border with Rwamagana District, Kibungo Province. This road, now in the Rwamagana District of Eastern Province and listed in the district development plan for 2006, was a priority for FY 2006. ACDI/VOCA will meet with the district officials before the end of the calendar year and pledge to undertake the road rehabilitation in Quarter 4 FY 2007, after the rains. Cash flow analysis indicates that sufficient funds should be available by then. This farm-to- market road should increase commercial activities in this poor eastern district in which the majority of the tomato groups assisted by ACDI/VOCA are active.

9 ACDI/VOCA Rwanda FY 2006 Results Report 3. Objective 2: Improved household health and nutrition and reduced vulnerability to HIV/AIDS.

The Gikongoro Food Security Project is a five-year project under the management of Africare/Rwanda as a sub-grantee to ACDI/VOCA. The Sub-Recipient Agency Agreement (RAA) for the implementation of the project covers the FY 2005 – FY 2009 period. Africare is intervening in Nyamagabe district (formerly Gikongoro district) where Africare successfully implemented the Local Government Initiative (1999-2002) and Gikongoro Aids Project (2001-2005) (Ref: Annex 3 – A). The Gikongoro Food Security/HIV/AIDS Project was designed to build upon achievements gained from the earlier Gikongoro projects as well as from Africare’s organizational experience in the management of household nutrition programs at the community level in more than a dozen African countries. According to a Poverty Profile Study undertaken by the Ministry of Finance and Economic Planning in 2002, the Nyamagabe district is the poorest region in Rwanda and the one with the highest HIV/AIDS prevalence. Data collected from the Africare VCT facility in Gikongoro township over the period 2002- 2006 reveal that HIV/AIDS prevalence averages 12% compared to national prevalence of 3% indicated in the Demographic and Health Survey of 2005.

Africare is focusing on activities under SO2. Specific Intermediate Results under SO2 are:

IR 2.1 Improved access and use of health and HIV/AIDS services.

IR 2.1.1: Increased access of cooperatives and associations to a range of general community health services. IR 2.1.2: Increased awareness about the dangers of HIV/AIDS through behavior change communication initiatives. IR 2.1.3: Increased availability and use of PLWHA and child care services at the community level.

IR 2.2 Improved knowledge and use of good nutritional practices IR 2.2.1: Improved nutritional status of children aged 0 – 5. IR 2.2.2: Mitigated impact of HIV/AIDS on the nutritional status of people in- fected and affected by HIV/AIDS .

Africare activities effectively commenced in October 2005, due to late approval of the HCA. Unfortunately, funding constraints delayed project start-up and led to the postponement and eventual abandonment of the baseline survey activity. Instead, baseline data for the nutrition impact indicator was obtained from the 2005 Demographic and Health Survey. Although other activities were able to begin in October 2005 and are well under way now, the nutrition component has only accomplished some preparatory activities such as identifying and registering beneficiaries. More substantive activities were impeded by the lack of locally available growth monitoring tools, e.g. weighing scales. Africare has been able to procure the tools internationally and import them to Rwanda and the full-scale implementation of nutrition activities is expected to commence during 1st quarter of FY 2007.

10 ACDI/VOCA Rwanda FY 2006 Results Report During FY 2006, Africare activities focused on the following areas:

- Conducting initial Participatory Rural Appraisals within intervention communities including the identification of community volunteers and the establishment of food security committees; - Training of community volunteers; - Distribution of food commodities to PLWHA associations and community volunteers; and, - The continuation and extension of previous GAP activities into new intervention areas: HIV/AIDS behavior change communication, voluntary counseling and testing, home based care and support to PLWHA. a. IR 2.1: Improved access and use of health and HIV/AIDS services.

The target on this indicator was estimated on the basis of Africare VCT Center attendance and the attendance of other VCT centers located near communities assisted by both Africare and ACDI/VOCA. However, the FY 2006 measurement of the indicator only took into account data from VCT centers located in current Africare intervention areas. HIV/AIDS activities are not being undertaken with the cooperatives and associations supported by the ACDI/VOCA small grants component. In the old Africare intervention areas (Gasaka, Mbazi, and Cyanika sectors) VCT centers data for the whole of FY 2006 were included. In new intervention areas where activities started in July 2006 it was not relevant to include data from VCT centers.

During FY 2006, the Africare VCT center located in the City of Gikongoro counseled and tested 2,315 clients including 1,211 females and 1,104 males. A total of 279 clients including 161 female tested positive, giving a 12.05% HIV/AIDS prevalence.

The two VCT centres located in Africare’s previous intervention areas tested in total 4,073 people. Out of this, 2,220 were males and 3,353 females. Among them, 314 including 267, female tested positive, giving a 7.71% HIV/AIDS prevalence.

In total, Africare VCT centers and the two additional VCT centers located in previous intervention areas tested in total 6,388 people including 3,324 males and 4,564 females. In total, 593 people including 428 female tested positive, giving a 9.28% HIV/AIDS prevalence.

The achievement for this indicator (6,388) far exceeded the FY 2006 target (2,500 people). This achievement is due mainly to the result of BCC activities conducted by Africare in its intervention areas. Since other organizations are intervening in some of Africare intervention cells, there is a need for the next fiscal year to disaggregate VCT attendance as a result of Africare BCC activities, from results obtained through sensitizations undertaken by other organizations. Data collection forms will be developed and shared with other VCT centers in order to obtain information on the origin of sensitizations received by VCT attendants before coming for testing. As a result of the high performance of VCT attendance in FY 2006, and taking into account interventions in new administrative sectors where other VCT centres are located, Africare suggests the revision of annual targets for this indicator from FY 2007 to FY 2009 (see IPTT).

11 ACDI/VOCA Rwanda FY 2006 Results Report b. IR 2.2.2: Mitigated impact of HIV/AIDS on the nutritional status of people infected and affected by HIV/AIDS.

This impact indicator will be measured during mid-term evaluation in FY 2007. Since Africare did not undertake a baseline survey, the baseline level of this indicator was obtained from the 2005 Rwanda Demography and Health Survey. Data for the former Gikongoro Province was extrapolated to the baseline level for the current project intervention zone.

4. Objective 3: Increased access to basic food commodities through monetization and local production.

Under the MYAP, ACDI/VOCA continues its role as the lead organization for an umbrella monetization program. In addition to the ACDI/VOCA development activities, proceeds generated from monetization activities support the World Vision (WV) and Catholic Relief Services (CRS) activities in Rwanda. The monetization program, while providing essential resources to implement development projects for the three partners, is also a model development tool. The auction procedures make the popular USA vegetable oil accessible to all interested buyers, preventing domination of the market by a few wealthy and established commodity traders. ACDI/VOCA also seeks out smaller traders and informs, trains, and encourages them to participate in the monthly tender bid auctions.

a. IR 3.1: Increased availability of basic commodities through monetization.

i. Sales

The ACDI/VOCA Monetization Department held six sealed-bid tender auctions in FY 2006 and sold more than 5,190 MT of ACDI/VOCA, CRS and WV vegetable oil. The average number of traders who submitted bids in these sales was 14, with at least half women. Overall, 23 different buyers, including 11 women, purchased oil in the tender sales in 2006, demonstrating the accessibility of the sales.

Eighty-one MT of vegetable oil was sold through 31 negotiated sales proving that negotiated sales continue to be a popular alternative market for the vegetable oil monetization. Restaurants, bakeries and hotels purchased the vegetable oil directly from ACDI/VOCA who sold the oil at the highest price received in the most recent sale. This allowed the buyer to avoid paying a premium market price while ACDI/VOCA was able to offset the lower prices received in the previous sale. Five new businesses participated in negotiated sales including two of Kigali’s four-star hotels: the Hotel des Mille Collines and the Novotel Hotel Umubano.

Apart from the monetization of vegetable oil, ACDI/VOCA also monetized 1,100 MT of Hard Red Winter wheat in FY 2006, a sale that was negotiated between the only two operating wheat mills in Rwanda. The SOTIRU mill in Ruhengeri bought 800 MT, and the Nyungwe mill in Mudasomwa purchased 300 MT. The sales price per metric ton was $400 which was 74% of the actual C&F price.

12 ACDI/VOCA Rwanda FY 2006 Results Report ii. Challenges

In an effort to liquidate vegetable oil stocks remaining from 2005 and disburse proceeds urgently needed by all three Umbrella Partners, ACDI/VOCA embarked on an aggressive monetization sales campaign in 2006. Four of the six sealed tender sales offered and sold more than 900 MT, a new high for the Rwanda monetization program. New sources for negotiated sales were sought out including hotels and bakeries. While the efforts proved successful at clearing out almost all of the 2005 stocks, five warehouses remained full with 2006 stocks at the end of the year, thereby continuing the pressure to sell the remaining oil.

b. IR 3.2: Strengthened capacity of local traders to market and distribute imported and locally produced commodities.

To ensure the transparency of the monetization sales and increase the number of participants, ACDI/VOCA regularly announced training sessions ahead of the sealed bid tender auctions. In FY 2006, 25 traders, including eleven women, were trained at the ACDI/VOCA office in Kigali. Seven of these traders submitted bids in follow-on sales, including four women.

ACDI/VOCA also promoted the participation of smaller buyers in the tender auctions, especially those with businesses outside of Kigali. As these buyers generally procure USA oil directly through Kigali wholesalers, they may not be aware of the ability to buy oil directly from ACDI/VOCA, or they may not understand the bidding process. The Monetization Department visited up-country markets to explain the sealed bid auction process and to encourage buyers to participate. In April 2006, one trip was made to the town of Byumba which lies to the north of Kigali. Four traders participated in the training, and though all expressed interest, only one submitted a bid in the next sale. This underscores the need for repetitive visits to these areas to ensure that the traders understand the tender auction process. A follow-up visit of this nature took place in the town of Butare in March 2006, which had previously been visited by ACDI/VOCA monetization staff.

ACDI/VOCA further promotes the participation in the tender auctions of traders from outside of Kigali by speaking with them directly by phone ahead of a sale. Bid forms are sent to designated buyers in each city who distribute them to fellow shop owners. Completed bid forms and certified checks to meet bid requirements are delivered by local courier at ACDI/VOCA’s expense to Kigali in time for submission for the pending sale. A small amount of oil (roughly 10% of the total) is set aside for these buyers, and, if their bids are not high enough to win the auction, they are offered the oil at the highest bid price received. A total of nine merchants from outside of Kigali took advantage of this offer and submitted bids in at least one tender auction. As a result, 285 MT was sold to merchants with businesses outside of Kigali in FY 2006.

B. Monitoring & Evaluation, Audits, and Studies

1. Monitoring & Evaluation Plan

In January 2006, ACDI/VOCA recruited a social scientist with experience in USAID M&E systems to revise the indicators and IPTT for the MYAP. The revision was 13 ACDI/VOCA Rwanda FY 2006 Results Report necessary to avoid reproducing the errors of the 2000 – 2005 DAP in monitoring, evaluating, and reporting on program progress.

In February 2006, Richard Swanson submitted his final report completing the M&E consultancy for the Rwanda MYAP. As Dr. Swanson conducted the final evaluation of the 2000 – 2005 DAP, he was well-acquainted with the successes and lessons learned from the previous program—lessons which ACDI/VOCA wished to build upon in the current MYAP. The consultancy dealt with a number of issues, primarily the revision of the Indicator Performance Tracking Table (IPTT) submitted with the MYAP proposal, and the development of a strategy for collecting information from partners. Dr. Swanson also attempted to assist ACDI/VOCA and Africare, the primary MYAP sub-grantee, to formulate a plan for exploiting synergies between each program’s activities, as requested by USAID Food for Peace in the Transfer Authorization (TA). The consultant spent the second half of January 2006 in Rwanda consulting with ACDI/VOCA Rwanda staff as well as with staff from Africare. ACDI/VOCA planned to submit the M&E report to USAID/Kigali for review during that quarter and then to USAID Food for Peace/Washington, but submission was delayed until resolution of the Food Aid issue. The revised M&E plan has now been submitted and was approved by FFP/W on November 14, 2006.

14 ACDI/VOCA Rwanda FY 2006 Results Report

The new IPTT:

Indicator Base FY 05 Target FY 05 FY 05 FY06 FY 06 FY06 FY 07 FY 07 FY 07 FY08 FY 08 FY 08 FY09 FY 09 FY 09 LOA LOA Line Achieved % A/T Target Achieved % A/T Target Achieved % A/T Target Achieved % A/T Target Achieved % A/T Target Achieved

Objective 1: Increased incomes and reduced vulnerability to food insecurity (among household members of associations, cooperatives, farmer groups assisted by ACDI/VOCA & Africare) IR 1.1: Increased adoption of improved agricultural production and processing practices Impact Indicator 1.1: Total $ $2,216,128 $3,635,150 $4,321,113 119% $5,582,546 $1,488648 27%1 $6,312,803 $ % $6,851,768 $ % $7,762,018 $ % $30,144,285 $ value of commodities sold by members through cooperative II 1.1a: Total Value of Wheat - - $50,289 - $55,318 $28,000 51% $66.381 $ % $79,658 $ % $95,589 $ % $296,946 $ II 1.1b: Total Value of Coffee - $1,080,000 $832,974 77% $1,080,000 $665,000 62% $1,188,000 $ % $1,305,800 $ % $1,437,480 $ % $6,092,280 $ II 1.c: Total Value of Tea $2,123,949 $2,336,344 $3,164,666 135% $3,481,133 - 0% $3,829,246 $ % $4,212,387 $ % $4,633,387 $ % $18,492,280 $ II 1.d: Total Value Tomatoes - $122,018 $174,312 143% $807,339 $561,363 70% $1,049,541 $ % $1,049,541 $ % $1,364,404 $ % $4,392,843 $ II 1.e: Total Value Milk $92,179 $96,788 $98,872 102% $108,756 - 0% $119,635 $ % $131,599 $ % $144,758 $ % $601,536 $ II 1.f: Total Value (Other) - - - - $50,000 $234,285 469% $60,000 $ % $72,000 $ % $86,400 $ % $268,400 $ II 1.2: Median $ Received by $178 $178 - - $180 $28 156% $180 $ % $200 $ % $250 $ % $250 $ Cooperative Members II 1.3: Total $ Value of Inputs - - - - $50,000 $341 1% $50,000 $ % $70,000 $ % $90,000 $ % $90,000 $ Purchased by Members II 1.4: Total $ Value of Inputs - - - - $100,000 $454,667 455% $160,000 $ % $200,000 $ % $250,000 $ % $250,000 $ Received as Credit from Cooperatives II 1.5: Total $ Value of Grants - - - - $810,000 $50,000 6% $945,950 $ % $883,864 $ % $600,186 $ % $3,240,000 $ Given to Cooperatives (Cumul) II 1.6a: Total $ Value of - - - - $500,000 n/a % $1,000,000 $ % $1,000,000 $ % $740,000 $ % $3,240,000 $ Loans Leveraged from financial institutions II 1.6b: Loans (cumul) as % - - - - 62% n/a 0% 106% % % 113% % % 123% % % 100% % of grants given II 1.7: % of grant recipients 5% 5% 5% 100% 10% 100% 1000%2 20% % % 30% % % 40% % % 50% % with developed, maintained, and transparent financial accounting systems Monitoring Indicator 1.1: 39 - - - 10 8 80% 30 % 50 % 60 % 60 # of Cooperatives Worked With by A/V & Africare MI 1.2: # of Cooperatives - - - - 5 1 20% 15 % 25 % 40 % 40

1 Given the relative inactivity of the Food Security Grants Fund (see section 2.a.v), most of the targets under Objective 1 were unattainable for FY2006. 2 Grantees in FY2006 have both received grants from ACDI/VOCA in the previous DAP.

15 ACDI/VOCA Rwanda FY 2006 Results Report

Indicator Base FY 05 Target FY 05 FY 05 FY06 FY 06 FY06 FY 07 FY 07 FY 07 FY08 FY 08 FY 08 FY09 FY 09 FY 09 LOA LOA Line Achieved % A/T Target Achieved % A/T Target Achieved % A/T Target Achieved % A/T Target Achieved % A/T Target Achieved receiving grants MI 1.3: Total # of 69,321 - - - 150,000 1,500 1% 200,000 % 250,000 % 350,000 % 400,000 Members of Assisted Cooperatives (receiving grants) MI 1.4: % of cooperatives - - - - 50% 100% 200% 60% % % 60% % % 80% % % 80% % receiving grants with positive bank accounts MI 1.5: # of members - - - - 1,000 0 0%3 5,000 % 10,000 % 20,000 % 20,000 purchasing inputs from cooperative (cumul) MI 1.6: # of members receiving - - - - 1,000 0 0% 10,000 % 20,000 % 30,000 % 30,000 inputs as credit from cooperative IR 1.2: Improved access to markets MI 1.7: KM of farm to market - - - - 17 0 0% 17 % 17 % 17 % 68 roads rehabilitated MI 1.8: # of bridges - - - - 5 0 0% 10 % 15 % 20 % 20 rehabilitated to increase market traffic (cumulative) Objective 2: Improved household health and nutrition and reduced vulnerability to HIV/AIDS.

IR2.1: Improved access and use of health and HIV/AIDS services

Impact Indicator 2.1: 20704 N/A 0 0% 2 500 6 3885 256% 10 0006 12 000 15 000 39 500 6 388 Total # tested at VCT Centers near Program Cooperatives & Associations

Impact Indicator 2.2: TBD7 0 0 0% 7 500 0 0% 10 000 12 500 17 500 50 000 0 Total # tested within Program Assisted Cooperatives &

3 The cooperative receiving a grant in FY2006 does not distribute or sell inputs to its members. 4 Baseline information obtained from Africare VCT and from 2 others important VCT centers closest to communities benefiting from Africare support in old intervention areas for the period October- December 05. 5 FY 06 achievements for Africare VCT and the 2 other VCT where data were collected to determine the baseline level of this indicator 6 Due to the high level of FY 06 achievement and taking into account Africare interventions in new areas, Africare Rwanda proposes revision of annual targets for this indicator. Proposed revised targets from FY 07 to FY 09 are stated in the IPTT. Taking into account data from Africare VCT, the 2 others VCT where baseline information were collected, and 2 other VCT centers located in Africare old intervention areas, it appears that 7614 people were counseled and tested. Africare started intervening in July 06 in new administrative sectors where 4 VCT centers are located. This will as well increase VCT attendance due to Africare sensitizations in these areas.

16 ACDI/VOCA Rwanda FY 2006 Results Report

Indicator Base FY 05 Target FY 05 FY 05 FY06 FY 06 FY06 FY 07 FY 07 FY 07 FY08 FY 08 FY 08 FY09 FY 09 FY 09 LOA LOA Line Achieved % A/T Target Achieved % A/T Target Achieved % A/T Target Achieved % A/T Target Achieved % A/T Target Achieved

Associations

0 0 0 0% 900 184 20% 1 100 1 300 1 500 4 800 184 Monitoring Indicator 2.1. Total People Living With HIV/AIDS identified within cooperatives receiving non-food support Monitoring Indicator 2.2. 0 0 0 0% 600 212 35% 900 900 900 3 300 212 # of cooperatives & Associations members with health insurance (Mutuelles de Sante) Monitoring Indicator 2.3. 0 0 0 0% 2 021 1 766 87% 3 760 3 901 3 760 13 442 1 766 Number of People trained in HIV/AIDS awareness raising

MI 2.3.a # of Peer Educators 0 0 0 0% 94 120 128% 0 94 0 188 120 trained MI 2.3.b # of Peer Counselors 0 0 0 0% 1 880 1 5808 84% 3 760 3 760 3 760 13 160 1 580 trained MI 2.3.c # of Home Based 0 0 0 0% 47 66 140% 0 47 0 94 66 Care Volunteers trained

IR2.2: Mitigated impact on the nutritional status of people infected and affected by HIV/AIDS

Impact Indicator 2.3: 27.6%9 0 N/A N/A N/A N/A N/A -2% -4% -4% 0% % reduction of underweight children (0-36 months) within program assisted cooperatives & Associations Monitoring Indicator 2.4.: 0 0 0 0% 2 021 2 947 146% 3 901 3 901 3 901 13 724 2 947 # of HIV/AIDS service providers receiving food

7 The baseline information of this indicator could have been obtained through data collection within cooperatives and associations in both Africare and ACDI/VOCA intervention areas. So far, no cooperative or association has been funded by ACDI/VOCA in its intervention zone or in Africare’s intervention zone. 8 1,100 other Peer-Counselors were involved in peer-education sessions in early September 06, and are due for completion in November 06. This number has not been taken into account for the measurement of this indicator. 9 This baseline level represents the % of underweight children in the Southern Region of Rwanda according to data from the 2005 Demographic and Health Survey. Africare did not conduct a baseline survey.

17 ACDI/VOCA Rwanda FY 2006 Results Report

Indicator Base FY 05 Target FY 05 FY 05 FY06 FY 06 FY06 FY 07 FY 07 FY 07 FY08 FY 08 FY 08 FY09 FY 09 FY 09 LOA LOA Line Achieved % A/T Target Achieved % A/T Target Achieved % A/T Target Achieved % A/T Target Achieved % A/T Target Achieved rations Monitoring Indicator 2.5 0 0 0 0% 600 672 112% 900 900 900 3 300 672 # of PLWHA receiving food rations within cooperatives & Associations Monitoring Indicator 2.6: % 0% 0% 0 0% 15% 0% 0% 25% 50% 75% 75% 0% Eligible children (0-5 years) in Cooperatives & Associations participating in growth monitoring program

IR 3.1: Increased availability of basic commodities through monetization Impact Indicator 3.1: Average Regional Retail Price for Vegetable Oil/liter stabilized II 3.1a: Quarter 1: - 700 700 100% 700 n/a % 700 % 700 % 700 % 700 II 3.1b: Quarter 2: - 685 685 100% 685 618 90% 685 % 685 % 685 % 685 II 3.1c: Quarter 3: - 650 650 100% 650 618 95% 650 % 650 % 650 % 650 II 3.1d: Quarter 4: - 678 678 100% 678 644 95% 678 % 678 % 678 % 678 Monitoring Indicator 3.1: - 4,470 1,721 39% 5,800 5,272 91% 5,111 % 5,611 % 4,861 % 25,723 MT of monetized commodities MI 3.1a: Vegetable oil: - 2,110 0 0% 2,500 1,850 74% 2,550 % 2,610 % 2,610 % 12,380 ACDI/VOCA MI 3.1b: Vegetable oil: - 2,230 1,721 77% 2,000 2,210 111% 1,390 % 1,490 % 1,560 % 8,670 (World Vision, CRS) MI 3.1c: Wheat - - - - 1,100 1,100 100% 480 % 820 % 0 % 2,400 (ACDI/VOCA) MI 3.2: Metric Toms of Food Assistance Provided to Africare for Distribution as Food Rations MI 3.2a: Africare - 50 0 0% 80 55 69% 25 % 25 % 25 % 155 (distributed): Vegetable Oil MI 3.2b: Africare: CSB - 80 0 0% 120 96 80% 342 % 342 % 342 % 1,146 (corn,soybeans blend) MI 3.2c: Africare: Bulger (SF) ------324 % 324 % 324 % 324 IR 3.2: Strengthened capacity of local traders to market and distribute imported and locally produced commodities II 3.2a: # of bidders outside 5 7 7 100% 10 9 90% 13 % 17 % 20 % 20 Kigali II 3.2b: % bidders are 40% 42% 28% 66% 44% 44% 100% 46% % % 48% % % 50% % % 50% % women MI 3.3: Average # Traders 11 13 13 100% 15 14 93% 18 % 20 % 25 % 25 Participating in Sales MI 3.4: # of traders trained - 25 20 80% 55 45 82% 85 % 115 % 145 % 145 (cumul) MI 3.5: # of tender calls held - 10 4 40% 10 6 60% 10 % 10 % 10 % 50

18 ACDI/VOCA Rwanda FY 2006 Results Report 2. Bellmon Analysis

In April 2006, ACDI/VOCA contracted Emerging Markets Group (EMG) to conduct a Bellmon Analysis for FY 2007. The Cooperating Sponsors and USAID/Kigali decided that due to recent decisions regarding food aid taken by the Rwandan government, it would be desirable to conduct a more sophisticated study, incorporating detailed economic analyses, for the 2007 Bellmon. Such a Bellmon would theoretically be more objective and persuasive than previous Bellmons. In addition, everyone thought that a Bellmon that solicited direct input from the Rwandan government would help dispel some of the negative connotations of food aid that had became apparent last fall when the signing of the Host Country Agreements for ACDI/VOCA and World Vision were delayed.

The EMG approach, as summarized in their inception report, was:

General Considerations - The underlying framework of the Bellmon determinations for both monetization and distribution will be the current and projected national food balance. The food balance will be assessed in three ways:

Through interviews with key stakeholders at a national level, (relevant ministries, statistical office, Customs and revenue authorities, FEWS and donor community representatives) Through a detailed analysis and review of existing data sets and literature, including customs and financial records where available. Through rapid appraisal of selected regions to collect and analyze first-hand data It is not anticipated that the study team will conduct an independent assessment of food production. Instead the team will use the existing data sets generated by La Statistique et L’Informatique Appliquees au Service du Development, which are generally accepted to be the most accurate available. To estimate the current nutritional requirement, previous year’s data (including exports and imports from all sources) will be used to generate an empirical nutritional requirement, reflecting actual consumption levels of a limited number of foodstuffs. Such an approach has a double benefit. On the one hand it avoids reliance upon standard nutritional requirements, (since these may not reflect traditional dietary patterns) while on the other, it does not require a fully comprehensive assessment of all dietary components (eg. mushrooms, honey, eggs and other animal products) which tend to be omitted from most rapid consumption estimates. Since the nutritional requirement is generated without reference to these components, it can also be applied to determine surplus or deficit in the same way. Assessment of Storage and Distribution Capacity The intention of this part of the determination is to assess the adequacy of the physical and logistical infrastructure to permit the timely performance of the monetization and distribution exercises…Although initial indications are that haulage constraints are of limited significance, occasional incidents during the last 12 months indicate that logistical administration might occasionally become an unexpected constraint justifying a more detailed investigation as part of this analysis.

19 ACDI/VOCA Rwanda FY 2006 Results Report Specific Considerations: Monetization – The monetization analysis is concerned with two specific issues:

Monetization of edible oil Monetization of wheat

Initial observations and previous analyses suggest that the edible oil imported for monetization is sold at a premium price (compared with most locally produced oils) and consumed almost exclusively in urban areas. The analysis will confirm the selling prices during the last year and determine the proportion of the market made up by monetized oil… An assessment will be made of total oil imports from all sources (including food aid) and the potential significance in the marketplace of anticipated monetization amounts for 2007 will be determined.

Monetization of wheat occurs on a limited basis due to restricted demand. While import parity pricing is not a statutory condition for monetization of wheat, recent sales prices will be compared with import parity prices to determine the extent to which commercial imports might substitute for monetization. Interviews with milers will establish the extent to which any viable domestic product might substitute for monetized imports.

Specific Considerations: Distribution – It will be important to examine the extent to which distributed commodities are being monetized, and more significantly, the extent to which such self-monetization constitutes any real disincentive to local production…

On June 23 2006, Emerging Markets Group (EMG) formally submitted the FY 2007 Bellmon Analysis to the Cooperating Sponsors. In general, while the FY 2007 Bellmon found that there were no disincentives to the specific commodities planned for importation through the Title II programs, it did note that for both monetization commodities, vegetable oil and hard red winter wheat, the selling prices at times fell below the import parity prices. EMG provided templates to calculate the import parity prices and recommended that this calculation be done in collaboration with the Ministry of Finance to ensure transparency and, more important, buy-in by the government. The Bellmon Analysis did recommend the importation and monetization of 4,700 MT of vegetable oil and 480 MT of hard red winter wheat for 2007.

3. A-133 Audit

ACDI/VOCA-Washington undergoes an annual A-133 audit of which ACDI/VOCA- Rwanda is a part.

4. Internal and External Plans and Studies

DUTERIMBERE. Rapport d’Utilisation des Fonds de la Troisième Tranche de Financement du Projet de Production des Fruits de Qualité Exportable. Kigali : 3 January 2006. Emerging Markets Group. FY 2007 Title II Bellmon Monetization and Distribution Study: Rwanda. Tyson’s Corner: June 2006. Mazima G. Rapport d’Expertise des Travaux d’Aménagement sur le Site de l’Usine de la COVEPAR pour le Compte de l’ACDI/VOCA. Kigali: January 2006.

20 ACDI/VOCA Rwanda FY 2006 Results Report Munezero, K. C. A Report on Internship Carried Out at ACDI/VOCA from 12 June to 31 August 2006. Kigali: August 2006. Mukapasika, E. Rapport de Stage: Importance des Espèces Agroforestières dans la Promotion de la Culture des Caféiers sous Ombrage, Cas Nyamyumba et Kayove. Kigali: November 2006. Mutuyimana F. Internship Report Carried Out at ACDI/VOCA in Monetization Department from 12 June – 31 August 2006. Kigali: September 2006. Ndekwe, G. La Contribution des O.N.G. Internationales dans le Renforcement des Capacités Productives des Agriculteurs Rwandais. Butare: April 2006. Nzabonimana, J.C. Rapport de la Première Session de Formation des Membres des Organes des Coopératives Partenaires de la Minoterie de Nyungwe Portant sur la Bonne Gouvernance et la Gestion du Patrimoine Coopératif. Kigali: August 2006. Nzabonimana, J.C. Rapport de la Formation des membres des Organes et du Personnel de la Coopérative A.T.P. (Pfunda) Portant sur la Planification Participative des Activités et l’Intégration des Aspects Genre dans le Processus de Planification. Kigali: August 2006. Nzabonimana, J.C. Rapport Synthétique du Diagnostic Organisationnel et Gestionnaire des Associations Membres ou Partenaires de la Coopérative pour la Valorisation et Exportation des Produits Agricoles du Rwanda (COVEPAR). Kigali: 21 April 2006. Rudasingwa, A.N. Bilan de Fin d’Exercise 2004. Kigali: March 2006. Rudasingwa, A.N. Revue Financière et Organisationnelle de la Coopérative La REINE. Kigali: 26 July 2006. Rudasingwa, A.N. Revue Financière, Organisationnelle, et de la Fonctionnalité de l’Association GIRAMATA sise à Byumba, Exercise 2001 - 2005. Kigali: January 2006. Swanson, R. Revised ACDI/VOCA-Rwanda M&E Plan for Title II Development Activity Program (DAP) 2005-2009. Washington: February 2006. Twahirwa, E. Rapport de Stage Effectué su Sein de l’ACDI/VOCA à Kigali du 18/08 au 29/09/2006. Busogo: October 2006. Wansaula, I. Appui à la Caféiculture Comme Facteur de Développement Rural au Rwanda : Cas de la Coopérative COOPAC Financée par l’ACDI/VOCA. Butare: October 2005.

21 No. 4 of 4 Originals

MEMO OF UNDERSTANDING

Between

Ministry of Finance and Economic Planning, Government of Rwanda

And

ACDWOCA

1.0 This Memo of Understanding (hereinafter referred to as "MOU") is made between the Government of Rwanda (hereinafter referred to as the "GOR"), represented by the Ministry of Finance and Economic Planning (hereinafter referred to as "MINECOFIN") and ACDWOCA and witnessed by the Government of the United states acting through the United states Agency for International Development (hereinafter referred to as "USAID.)

1.1 Whereas the GOR, in collaboration with USAID, has jointly approved the USAID Strategic Objective Agreement No. 7 to promote household level food security, poverty eradication, and agricultural-led economic growth; and,

1.2 Whereas ACDWOCA, a USAID-approved Cooperating Sponsor under the U.S. Public Law 480 (P.L. 480) program in Rwanda, seeks to support agricultural development in developing societies and emerging democracies through the use of private-sector food marketing channels for the importation, handling, distribution, and monetization of food commodities provided by the United States and has made the determination that such assistance shall not prove to be a disincentive to local production and marketing in Rwanda.

1.3 Now therefore, the parties hereto hereby agree that ACDINOCA shall implement a P.L. 480 Program valued at US$18.8 Million as described in the attached program description. The parties will discharge the responsibilities incumbent upon them under this agreement in accordance with U.S. Law 22 C.F.R. Part 21 1, hereinafter Regulation 11, incorporated herein and made a part of this MOU by reference, on the following terms and conditions:

2.0 The Monetization and Distribution Project 2.1 USAID has agreed, subject to commodity availability and congressional approval, to provide to ACDWOCA 12,380 metric tons of vegetable oil and 2,400 metric tons of wheat for monetization in Rwanda under the terms and conditions of the transfer authorization. This project is being carried out under the Umbrella Monetization Agreement (hereinafter referred to as "UMA").

2.2 USAID has agreed, subject to commodity availability and congressional approval, to provide to ACDWOCA 430 metric tons of vegetable oil and 71 0 metric tons of codsoy blend flour (CSB) for transfer to its sub-grantee, Africare, for implementation of their distribution program, under the terms and conditions of the transfer authorization and under ACDWOCA's Recipient Agency Agreement with Africare.

2.3 Project Objectives

2.3.1 GOR Food Security Objective: the Project will contribute to the GOR's food security objective as agreed to in the USAIDIRwanda's Strategic Objective No. 7, titled; Expanded Economic Opportunities in Rural Areas which has the objective of increasing rural household food security by increasing access to agricultural inputs and staple foods by rural families through expanded production, better market access, an improved environment for small scale private enterprise, and increased capacity to monitor and respond to those most affected by food insecurity.

2.3.2 Specific Objectives:

a) Increased incomes and reduced vulnerability to food insecurity b) Improved household health and nutrition and reduced vulnerability to HIVIAIDS c) Increased access to basic food commodities through monetization and local production

2.3.3 Project Activities

ACDWOCA's interventions will place special emphasis on promoting association and cooperative activities in exkemely food insecure areas in Kigali- Ngali, Kibungo, Kibuye, and Ruhengeri. Priority will be given to increasing production, processing, and marketing of cereals, particularly wheat and rice, as well as cassava and soybeans. Both wheat and rice have significant potential for import substitution and for export to regional markets while cassava and soybeans can be transformed for a variety of uses. Although the geographical areas and focus commodities of the program have been prioritized, Rwanda is very small and the benefits of the Food Security Grants program will not be strictly confined to four provinces but will also target opportunities in other provinces to address food insecurity. Afiicare, as sub-grantee to ACDWOCA, will assist individual farmers and small farmer groups in target communities in four administrative districts (Nyarguru, Karaba, Kahua and Mushubi) of Gikongoro Province and three (Rushashi, Buliza and Rulindo) of Kigali-Ngali Province. Africare will address all three of the principal components of food insecurity, that is, increase food availability by increasing agricultural production, improve access to food by raising rural incomes, and improve food utilization by addressing the HIVIAIDS epidemic and improving household nutrition in Kigali-Ngali and Giongoro provinces. The HIVIAIDS and nutrition components will assist in improving or prolonging the productive capacity of people living with HIVIAIDS and their households. Through education and the provision of donated protein rich cornlsoy blend flour (CSB) and vegetable oil to people who are seropositive and those who assist them, the project will mitigate the impact of HIVAIDS. 3.0 Responsibilities of ACDWOCA

3.1 ACDWOCA agees to import, store, and monetize - primarily through public tender but also through liited negotiated sales - vegetable oil, wheat, and possibly other commodities provided through the United States P.L. 480 agricultural program. ACDWOCA will invite a representative fkom the National Tender Board to observe each auction. ACDWOCA will be responsible for monetizing all commodities donated to Rwanda by the United States for this purpose.

3.2 ACDWOCA agrees to import, store, and transfer to Afiicare for distribution to people living with HIVIAIDS and their households, vegetable oil, cornlsoy blend flour (CSB), and possibly other commodities provided through the United States P.L. 480 program.

3.3 ACDWOCA agrees to implement the P.L. 480 Title I1 Program in accordance with the Transfer Authorization, Award No.: FFP-A-00-04-00073-00, approved August 2004, and Reslation I I, in its entirety. ACDWOCA will conduct an annual market study, Bellmon Analysis, to determine the effect of any imported P.L. 480 Title 11 commodity on the local market. ACDWOCA will only recommend importation of donated P.L. 480 Title TI and Title IV food commodities for monetization and distribution if such importation and monetization does not have a significant adverse impact on the local market.

3.4 ACDWOCA agrees, subject to the continuation of the USAID grant, to provide adequate staffing at its Washington, DC, USA headquarters to implement P.L. 480 documentation and reporting requirements.

3.5 ACDWOCA agrees, subject to continuation of the USAID grant, to hire one expatriate senior staff person who shall serve as the P.L. 480 Program Chief of Party and be responsible for the overall operations of the agricultural development program, including field implementation. A second expatriate staff person will be hired by ACDWOCA to serve as the Deputy Chief of PartyMonetization Manager who will be responsible for the importation, storage, and sales of the commodities as well as the disbursement and control of proceeds from sales. Africare will hire two expatriate staff members to serve as Country Representative and Project Coordinator.

3.6 ACDWOCA will maintain a P.L. 480 Local Currency Holding Account in Kigali into which all proceeds from the sales of commodities will be deposited for future use in financing program activities and payment of indirect costs to the head office in Washington, D.C., U.S.A.

3.7 ACDINOCA agrees to establish, staff, and administer a P.L. 480 Title I1 Monetization Program office in Kigali and to establish a separate local currency account in a bank in Rwanda, funded from the P.L. 480 Local Currency Holding Account, for the purpose of paying the administrative and logistic costs of the program.

3.8 ACDWOCA is responsible for accounting to the Government of the United States under Regulation 11 for any losses incurred, be it through spoilage, pilferage, etc., in its management of the P.L. 480 Title I1 donated commodities.

4.0 Responsibilities of the GOR

4.1 The GOR agrees to allow importation of the P.L. 480 donated commodities without consular invoices or, if such invoices are required, to issue consular invoices without cost to ACDWOCA. The GOR shall expedite clearance of commodities to avoid damage or loss.

4.2 The GOR shall assess VAT on the sale (monetization) within Rwanda of P.L. 480 Title I1 commodities. However, VAT proceeds will be collected by ACDINOCA and retained by ACDWOCA and its umbrella partners in the same proportion as their commoditv contribution, to be used in furtherance of program objectives under the uMA. The total amount of VAT collected will be considered counterpart funding and will represent the Government of Rwanda's contribution to program activities. ACDWOCA will report to the Rwanda Revenue Authority detailing the amount of VAT proceeds collected from the commodity sales on behalf of the participating buyers, and the specific amounts retained by ACDWOCA and its umbrella partners. The monetization of P.L. 480 Title I1 commodities shall be exempt kom all other taxes.

4.3 The GOR agrees not to permit re-export of any of the P.L. 480 commodities under this agreement and undertakes to guarantee that the donation of the P.L. 480 commodities, in compliance with USAID regulations, will not result in increased availability of vegetable oil for export and will neither interfere with, nor displace, sales of locally produced vegetable oil. 4.4 The GOR agrees to arrange for the recovery of any P.L.480 commodities under this program that appear in unauthorized channels and return them to ACDWOCA.

4.5 The GOR agrees to exempt the ACDWOCA and Africare expatriate staff from income tax and social security fund contributions, levied pursuant to the laws of the GOR. The GOR also agrees to exempt all taxes on personal and household effects brought into Rwanda for these individuals, as well as the commodities and equipment for the P.L.480 Title II Monetization Program.

4.6 The GOR agrees to permit ACDWOCA and fiicare to repatriate indirect wsts in accordance with their Negotiated Indirect Cost Agreement, set by annual audit.

4.7 The GOR further agrees to discharge its responsibilities as set out and described in Reguldion II, a copy of which in its entirety will be provided to the MWECOFW.

5.0 Period of Agreement:

This agreement shall remain in full force and effect through January 3 1, 2010.

Done at Kigali, by the authorized representatives of the parties hereto,

For the Government of Rwanda

Minister 1 .' .: ~.., .,'. ,,*" ' Ministry of Finance and Economic Planning /~ Government of Rwanda

For ACDWOCA IN WITNESS THEREOfj~fl~~l ',\ ,f. ,.=: ?:.?;? :,,.-.::.:.:. ?<,, , . . ... , For USAID , ;-. , ,- . ~ - Carl r~~onard President

Date: 70 /2b/~<

REPUBLIC OF RWANDA Kigali, ..... 0.5.Ml)T..20@...... No ...43. %~)h.6./!. Q../..!~A N

MINISTRY OF FINANCE AND ECONOMIC PLANNING P.O. Box 158 Kigali Tel: +250-577994 Fax: +250-577581 E-mail : mfinOrwanda1- .com

Mr. Kevin J. MULLALLY USAID Mission Director Kigali RWANDA

Dear Mr. Mullally,

&: Government of Rwanda ~ositionon Food Aid

In reference to our letter N04002/05/10/MIN dated September 20, 2005 and the subsequent meetings we had with you, I am pleased to inform you that the Government of Rwanda has adopted a position regarding the US food assistance to Rwanda.

In addition to the portion of our population who is continuously food insecure, currently there is a protracted food defidit due to unstable weather conditions. The most vulnerable Rwandans (the landless, widows, orphans, the handicapped and those living with HIVIAIDS) do not have the coping mechanisms to overcome these fluctuations in food production.

Therefore, over the medium-term, the Government of Rwanda appreciates food aid to mitigate the negative effect of both the chronic and seasonal food insecurity experienced by vulnerable populations. Food aid can be a tool to mitigate hunger and contribute to the Government of Rwanda's long-term food security strategy.

Our previous September 2005 letter encouraged a predominantly high ration of food aid to be monetized. The Government of Rwanda recognizes the constraints of the USAID food aid program and appreciates the importance of food distribution as long as it is well targeted. Food for work and targeted food distribution, especially for populations living with HIVIAIDS and malnourished children through maternal child health program, may continue for the most food insecure Rwandans so long as local production is not affected.

Website : htt~://www.minecofin.gov.rw The Government of Rwanda will periodically review the impact of food aid and the targeted populations with USAID to ensure there is no disruption to the local market and this particular program reinforces our own efforts to achieve food security on a sustainable basis for our vulnerable populations.

In conclusion, we would like to express our support to the food aid program which will be assessed on a regular basis with the USAID Mission in Rwanda based on the country needs and the production/market condition.

Looking forward to jumpstarting this process, please accept the assurances of distinguished cons&

Minister of

cc: - Hon. Minister of Local Government, Good Governance, Community Development and Social Affairs, - Hon. Minister Agriculture and Animal Resources KIGALI

Website : http://www.minecofin.~ov.rw

FLO Contact ID: 2330 FLO Decision ID: 1872

Abahuzamugambi Mr. Juvenal HABUMUKIZA Post Box 52 Butare, Maraba District, Butare Province, RWANDA

29/09/2006

Dear Mr. Habumukiza, We would like to inform you that, based on the results of the renewal inspection dated 14/09/2006 FLO-CERT decided on 28/09/2006 to lift the suspension of Abahuzamugambi`s certificate. We very much appreciate the progress you have made since the last inspection, nevertheless, some areas of non-compliance have been identified which leads to the decision that Abahuzamugambi is CERTIFIED WITH CORRECTIVE ACTION with follow up inspection This means that Abahuzamugambi is Fairtrade Certified and allowed to trade its products under Fairtrade conditions. Please find attached the certificate of Abahuzamugambi limited to a period of six months from the date of this decision. In order to keep the certification, Abahuzamugambi must fulfil corrective actions within the given deadline and conditions by the next inspection. These corrective actions and conditions and their respective compliance deadlines are described in Part C and D of the inspection report which is attached hereto. Fulfilment of the given corrective actions will be verified by a follow-up inspection. It is the responsibility of Abahuzamugambi to indicate to Ose Nielsen, your producer certification contact at FLO-CERT at the email address [email protected] at any time that Abahuzamugambi has taken actions to comply with the corrective actions and is ready for the follow-up inspection, within the given deadline. The costs for the follow up inspection will be charged to Abahuzamugambi on a real cost basis and are not included in the renewal certification fee. After scheduling the inspection, Abahuzamugambi will receive an invoice from the finance department of FLO-CERT. FLO-CERT shall base its final certification decision on the result of the follow-up inspection and shall send this decision to you in a separate certification letter. After fulfilment of the corrective actions, Abahuzamugambi will receive a certificate for one year starting from the above stated certification date.

Fulfilment of the given conditions will be confirmed in the next inspection. No additional documents, regarding compliance with conditions, need to be sent to us in advance of the inspection. If the corrective actions are not fulfilled within the given deadline, FLO-CERT will suspend the certification of Abahuzamugambi until the corrective actions are fulfilled. The maximum suspension period is 9 months and non-compliance with the Fairtrade Standard after this period may lead to a de-certification. As a Fairtrade Certified Producer, you may need to report Fairtrade sales and premiums to FLO-CERT. Please refer to the attached Trade Certification Flow of Goods Reporting Policy and the policy for your product for details. We recommend you visit the FLO website www.flo-cert.net, section “Internal Pages” for any further information about FLO-CERT such as the Fairtrade certified producers and traders. As Fairtrade certified producer, you have access to FLO’s Internal Pages with the following login and password: Login: 2330 Password: sjj4 For any further information, do not hesitate to contact Ose Nielsen your producer certification contact at FLO-CERT under the email address [email protected] or under phone number 0049 228 249 3 213 . Best regards

Frank Brinkschneider Director Producer Certification FLO-CERT GmbH

Attachments: • FLO-CERT Follow up Inspection Report • Certificate

Please confirm in writing receipt of this certification letter and the enclosed documents.

FFP Standardized Annual Performance Questionnaire - FY 2006

Country CS Name(s) Project location(s) in country (or Countries, for Regional Programs)

ACDI/VOCA RWANDA ALL PROVINCES

Program Start Date 10/01/04 Program End Date 01/31/10 Program Name ACDI/VOCA RWANDA MULTI-YEAR ACTIVITY PROGRAM

TA or Project Number FFP-A-00-04-00073-00

CS CONTACT INFORMATION

Contact Name Katie Cerretani Contact Email [email protected] Contact Address 50 F Street NW, Suite 1100, Washington, DC 20001 Contact Phone 202-641-4199 QUESTIONNAIRE FY 2006 Activities: Enter "No" here if NO Title II activities were implemented in FY 2006. Otherwise skip the question and continue.

Fill out the table below with the number of planned and actual direct beneficiaries by technical sector (disaggregating direct beneficiaries of HIV-specific activities in each technical sector from direct beneficiairies of non-HIV-specific activities) for FY06 and out years through FY10. Direct beneficiaries are those who come into direct contact with the goods or services provided by the program. Services include training and 1 technical assistance provided directly by program staff, and training and technical assistance provided by people who have been trained by program staff (e.g. agricultural extension agents, village health workers.) Direct beneficiaries are counted as individuals, not households.

Emergency/ FY07 FY08 FY09 Non- FY06 planned FY06 reached planned planned planned FY10 emergency Technical sector (disaggegate HIV and non-HIV) Male Female Male Female total total total planned total 1.1 NER Ag/ Natural Resource Mngt - Non-HIV 4238 3912 5588 6455 8,180 8,180 5,230 1.2 NER Health and Nutrition - HIV 8736 (total) 12289 (total) 20561 22996 25961 1.3 1.4 1.5 1.6 1.7 1.8 1.9 TOTAL - ALL ER & NER 4238 3912 5588 6455 28741 31176 31191 0 TOTAL - ER ER 0 0 0 0 0 0 0 0 TOTAL- NER NER 4238 3912 5588 6455 28741 31176 31191 0 Yes/No

2 Does your program implement activities to benefit IDPs or refugees? No If No, go to question #4 FY06 #

3.1 What was the number of IDP beneficiaries in FY06?

3.2 What was the number of refugee beneficiaries in FY06?

Yes/No

4 Does your program implement activities to maintain or improve the nutritional status of program beneficiaries? Yes If No, go to question #9

Fill out the table below with the indicators used by your program for annual reporting on the nutritional status of program beneficiaries. In column B, write the precise definition for each Indicator, including the measure and group measured (e.g. % of children 0-23 mo old with WAZ < -2, % of children 0-5 years old graduated from therapeutic feeding program with WAZ > 80% median). Measures include prevalence of 5 stunting (height for age Z - HfA), underweight (weight for age - WfA), wasting (weight for height WfH), weight gain, growth faltering (trend of weight gain), body mass index (BMI), middle-upper arm circumference (MUAC); average HfA Z score (HAZ), WfA Z score (WAZ), WfH Z score (WHZ), BMI, MUAC; proportion of children/adults recuperating to defined cutoffs (e.g. WAZ 80% median). For each indicator listed, fill in the desired direction of change (increase or decrease), the indicator value for the last two fiscal years (i.e. the results achieved), and the number of beneficiaries reached in FY06.

FY06 Desired # direction actual beneficiaries Indicator (+ / -) FY05 actual

5.1 # HIV/AIDS service providers receiving food rations in Gikongoro Province + increase N/A 2947 2947

5.2 # PLWHA receiving food rations within program-assisted cooperatives & associations + increase N/A 672 672

5.3 % eligible children (0-5 years) in program-assisted cooperatives & associtations participating in GMP + increase N/A 0 0

5.4

Yes/No

6 Did your program measure the prevalence of underweight (WAZ <-2) in children 0-59 mo of age in the target population in FY06? No If No, go to question #9

Targets FY07 FY08 FY09 FY10 % FY06 % underweight % underweight % underweight % underweight underweight

What was the prevalence of underweight (WAZ <-2) in children 0-59 mo of age in the target population in FY06? 7 What are the out year targets for % underweight through FY10, as applicable?

FY06 # 0-59 mo 8 What was the number of children 0-59 mo of age in the target population in FY06?

Yes/No

9 Does your program implement activities to improve health, nutrition or hygiene behaviors? No If No, go to question #11 Fill out the table below with the indicators used by your program for reporting on adoption of improved health, nutrition or hygiene behaviors. Use the drop down menu to select the indicator on which you are 10 reporting. Only the indicators on the drop down menu can be included. For each indicator, fill in data on the FY06 indicator value (i.e. the result achieved) and number of beneficiaries reached in FY06, and out year targets for the indicator value through FY10, as applicable. FY06 Targets FY07 FY08 FY09 FY10 Indicators actual % # beneficiaries target % target % target % target %

10.1

10.2

10.3

10.4

Yes/No 11 Does your program implement activities to maintain or improve household access to food? Yes If No, go to question #23

FY06 # households

12 How many households benefited from activities to maintain or improve household access to food in FY06? 800

Yes/No

13 Did your program measure months of adequate or inadequate food provisioning among the target population in FY06? No If No, go to question #15

Fill out the table below with the number of months of adequate or inadequate food provisioning data for FY06, for the most recent measure prior to FY06, and for out year targets through FY10, as applicable. 14 Select whether you are reporting months of adequate or months of inadequate food provisioning from the drop down menu.

Most recent FY prior to FY06 (enter n/a if FY06 was the Targets baseline) FY06 From which FY07 FY08 FY09 FY10 # months Indicator # months FY? # of months # of months # of months # of months

Yes/No 15 Did your program measure household dietary diversity among the target population in FY06? No If No, go to question #17

16 Fill out the table below with average household dietary diversity for FY06 and for the most recent measure prior to FY06.

Most recent FY prior to FY06 (enter n/a if FY06 was the baseline)

From which # food groups FY06 FY? Indicator # food groups Average household dietary diversity Yes/No 17 Does your Title II program provide farmers with extension/outreach services? Yes If No, go to question #23 Targets FY06 FY07 FY08 FY09 FY10 # farmers # farmers # farmers # farmers # farmers

How many farmers (individuals, not households) received extension/outreach services in FY06? What are the out 18 2724 5000 7500 10000 2500 year target number of farmers through FY10, as applicable?

# technologies

19 How many sustainable agricultural technologies is your project transferring? 2 20 List which sustainable agricultural technologies were made available for transfer in FY06 20.1 Improved tomato production 20.2 Multiplication and production of improved wheat varieties 20.3 20.4 20.5 20.6 20.7 20.8 20.9

# technologies

21 What is the minimum # of sustainable agricultural technologies targeted for adoption by project beneficiaries? 1

Targets FY07 FY08 FY10 FY09 FY06 % % % % beneficiaries % beneficiaries beneficiaries beneficiaries beneficiaries

What % of program beneficiaries adopted the minimum # of technologies in FY06? What are the out year targets 22 data not available - see comments through FY10, as applicable?

Yes/No 23 Does your program assist communities to develop disaster early warning and response systems? No If No, go to question #26

# communities

24 How many communities does your program plan to assist to develop disaster early warning and response systems over the LOA? Targets FY07 FY08 FY09 FY10 FY06 # communities # communities # communities # communities # communities

How many communities had disaster early warning and response systems in place in FY06? What are the out year 25 targets for # of communities through FY10, as applicable?

Yes/No

26 Does your program assist communities to improve or develop physical infrastructure to mitigate the impact of shocks? No If No, go to question #30

# communities

27 How many communities does your program plan to assist to improve or develop infrastructure to mitigate the impact of shocks over the LOA?

28 List what kinds of physical infrastructure were improved or developed in FY06 28.1 28.2 28.3 28.4 28.5 Targets

FY06 FY07 FY08 FY09 FY10 # communities # communities # communities # communities # communities

29 How many communities had improved physical infrastructure to mitigate the impact of shocks in FY06? What are the out year targets for # of communities through FY10, as applicable? Yes/No

30 Does your program assist communities to strengthen safety-nets to address the needs of their most vulnerable members? No If No, go to question #33

# communities

31 How many communities does your program plan to assist to strengthen safety-nets over the LOA? Targets

FY07 FY08 FY09 FY10 FY06 # communities # communities # communities # communities # communities How many communities had safety-nets in place in FY06? What are the out year targets for # of communities 32 through FY10, as applicable? Yes/No 33 Does your program help strengthen community capacity? No If No, end

# communities

34 How many communities does your program assist? 35 List the components of community capacity that your program strengthens. Select from the drop down menu. 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 Targets

FY07 FY08 FY09 FY10 FY06 # communities # communities # communities # communities # communities How many communities had strengthened community capacity in FY06? What are the out year targets for # of 36 communities through FY10, as applicable?